What happened
Shares of TAL Education (TAL +2.49%) have dropped today, down by 10% as of 12:20 p.m. EDT, after the China-based after-school tutoring company reported fiscal first-quarter earnings.
So what
Revenue in the fiscal first quarter jumped 71% to $550.6 million, with operating income more than doubling to $75 million. Net income similarly more than doubled to $66.8 million, or $0.11 per American depositary share (ADS). On a non-GAAP basis, earnings per ADS were $0.14. Three American depositary shares represent one Class A common share.
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Total student enrollments jumped by 89% to nearly 2 million, up from 1.05 million a year ago. The company expanded its physical network to 630 learning centers in 43 cities.
Now what
"The first quarter's financial and operational results reflect the steady growth of our offline and online business revenue and enrollments on a year-over-year basis," CFO Rong Luo said in a statement. "Looking ahead, we will pursue continuous improvements in product quality and customer satisfaction and we remain committed to a healthy and sustainable overall business development."
In terms of guidance, TAL expects net revenue in the fiscal second quarter to be in the range of $647.2 million to $660.8 million, representing growth of 42% to 45%. If you exclude the recent depreciation of the yuan relative to the U.S. dollar, top-line growth should be in the range of 40% to 43%.
